Wednesday, February 26, 2014

This
post compares two stocks.One is an
almost Dividend Machine and the other is a bona fide Dividend Machine which I
will name as a 2014 DM.

DGAS – an almost
Dividend Machine

Delta
Natural Gas Company, symbol (DGAS) is an inexpensive, almost dividend machine
stock that could be worth a look.Dividend
Machine fundamentals are in the table below.The reason DGAS is not a 2014 Dividend Machine is the five year annual
dividend increase is only 3.5% and there are no options.

Note
that DGAS is ex-dividend today so if you buy it, you have to wait a full 3
months before you are paid.

RAI – a 2014 Dividend
Machine

At
the risk of receiving damning emails, consider Reynolds American, symbol
(RAI.)This is a tobacco company.All of these companies generate tons of
cash, unlike biotech they do not “burn” through it, they share it.Look
at the Dividend Machine fundamentals table below and you will see that RAI is a
2014 Dividend Machine.

Moreover,
RAI has call options.See the call
option table below for an option available today.

Tuesday, February 25, 2014

Stocks with dividend yields that beat the 10 year U.S.
Treasury are not hard to find.Even
stocks with a minimal 3.5% yield are not hard to find.Finding a stock, in today’s market that has
both a 3.5% yield and a five year history of dividend increases that are
greater than 4% per year is the trouble.

I thought I should lower my dividend increase hurdle and
then I went grocery shopping and I realized that I will need that 4% increase
in a few years.

Stay in touch and as soon as I buy another Dividend Machine
in 2014, I will write it up.

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Covered Call Opportunities

Square, symbol SQ, is my current favorite stock that is not a dividend machine. To turn it into an income investment, I use SQ's volatiity to buy when it dips and sell calls. See the table above. Note that this call is not included in the post published on 12/12/18 M*

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TheMoneyMadam's Story

My income investing success came from my experience managing my and other people's money since 1993. Successful income investing requires discipline. In this blog I provide specific investments based on my principles of conservative income investing. I hope to help the thousands or even millions of people who have saved and want to invest their nest eggs to retire with income that grows. M* MoneyMadam

Disclaimer

Information on this blog does not constitute investment advice. Review or mention of any stock, bond, or other investment shall not be considered a buy or sell recommendation. Everything in this blog is the opinion of the author and no warranties are expressed or implied. M*MoneyMadam.